FastMed Urgent Care
Walk-in urgent care clinic operator providing immediate medical care services.
PE-OWNED
Acquired by KKR2020-08-25
What Made It Great
Convenient urgent care access with extended hours and multiple locations
What PE Will Likely Do
Reductions in nursing staff and increased reliance on lower-skilled medical assistants, leading to longer wait times and less attentive care for patients
Aggressive billing practices, including upcoding of procedures and diagnoses to maximize reimbursements, potentially resulting in higher out-of-pocket costs for patients
Closure or scaling back of less profitable but essential services, such as mental health or pediatric care, limiting access to comprehensive healthcare for the community
Extraction of large management and consulting fees, diverting funds away from direct patient care and investments in equipment and facilities
Expected Timeline
“0 to 6 months months”
Announcements of 'optimization' efforts and leadership changes, with little immediate impact on patient experience
“6 to 12 months months”
Gradual staffing reductions and service line reviews, leading to longer wait times and fewer available services
“12 to 24 months months”
Noticeable decline in service quality, with longer wait times, rushed appointments, and reduced access to certain medical specialties
“24 to 36 months months”
Potential closure of underperforming locations, service line eliminations, and quality-related scandals or regulatory actions
“36+ months months”
Potential financial distress, bankruptcy, or sale of the company to another operator, further disrupting patient care and access
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Monitor for any changes in the quality of care, such as longer wait times, rushed appointments, or reduced access to certain medical services
Be aware of potential increases in out-of-pocket costs due to billing upcoding or other practices aimed at maximizing reimbursements
Advocate for the preservation of essential services, such as mental health and pediatric care, which may be at risk of being cut
Stay informed about the company's financial health and be prepared to seek alternative healthcare providers if the quality of care declines significantly
Alternatives
Community-focused healthcare
Integrated managed care consortium